On 31/08/2023, the GSTN issued an advisory on introduction of “Electronic Credit Reversal and Reclaimed statement”.
Vide the above advisory, the GSTN has aimed to facilitate the taxpayers in correct and accurate reporting of ITC reversal and reclaim thereof and to avoid clerical mistakes. A new ledger has been introduced at the GST portal wherein taxpayers can report the balance of their ITC reversed up to July 2023 which is reclaimable. The said facility will be open till 30th November 2023 and have an option of 3 amendments. Amendments may be done up to 31st December 2023. The portal will subsequently maintain a record of reversal and re-claimed amount of ITC on a return period basis in the statement.
The above advisory is in line with the changes in GSTR-3B which were introduced last year which stated that the amount of ITC reversal shall be classified into two buckets – temporary and permanent reversal.